Question

When difference between compound and simple interest for three years is ₹228 at 4% interest per annum, the principal is ₹________

• A. 46875
• B. 48075
• C. 47295
• D. 46300

Answer 1

Answer:

A. 46875

For 3 years, the difference between Compound Interest (CI) and Simple Interest (SI) is:

$\text{CI} - \text{SI} = P\left(\frac{R}{100}\right)^2 \left(3 + \frac{R}{100}\right)$

Given:

• Difference = 228

• (R = 4%)

$228 = P \times \left(\frac{4}{100}\right)^2 \left(3 + \frac{4}{100}\right)$

$228 = P \times \frac{16}{10000} \times \frac{304}{100}$

$228 = P \times \frac{4864}{1000000}$

$P = \frac{228 \times 1000000}{4864}$

$P = \frac{228000000}{4864} \approx 46875$

Final Answer:

Principal = ₹46,875